Congress Must Pass An AI Moratorium

Michael Richards
Executive Director, Policy, U.S. Chamber of Commerce Technology Engagement Center (C_TEC)

Published

June 06, 2025

We’re not even halfway through 2025, and yet over a thousand AI-related bills have been introduced at the state and local levels. This wave of legislation has created a fragmented regulatory landscape that hinders economic prosperity.

That’s why the House Energy and Commerce Committee included a ten-year moratorium on state AI enforcement in its budget reconciliation bill, which will give Congress time to develop a unified federal framework, ensuring we remain a global leader in AI.

Conflicting AI Laws Cost Small Businesses

Our current patchwork of differing state laws disproportionately harms small businesses. The Chamber’s Empowering Small Business report found that small businesses using AI are doing better in terms of profits and hiring, yet most owners believe that varying state laws—especially those outside their home jurisdiction—will increase compliance costs and litigation risks. This amounts to a tax on mom-and-pop shops, who will now have to spend their hard-earned money on lobbyists and lawyers instead of investing in their businesses. Many are unable to afford such expenses, and these laws further impede their ability to use AI tools that would otherwise cut costs and time.

Congressional Progress Is Underway

This year, Congress proved it can pass crucial legislation with the TAKE IT DOWN Act. Further, the Senate’s bipartisan “AI Road Map” urges Congress to identify gaps in current laws and draft legislation where needed, and the House AI Task Force advocates for an agile, sector-specific approach, encouraging agencies to use existing authority to manage AI within their domains. With bipartisan interest and enough time, Congress is well-positioned to lead.

Would this moratorium leave Americans without protection against AI-related risks? Not at all. Federal regulators, including former FTC Chair Lina Khan, have emphasized that AI is not operating in a legal vacuum, and the FTC has the authority to protect against unfair and deceptive practices. State attorneys general would still be empowered to enforce against violations of consumer protection, privacy, and discrimination laws using AI just like any other digital tool.

The Bottom Line

A ten-year moratorium on state AI enforcement gives Congress the breathing room to craft a smart, targeted regulatory framework while avoiding a confusing patchwork of laws. It will allow lawmakers to build on current bipartisan efforts and give small businesses the clarity they need to adopt AI tools with confidence, which will foster innovation, protect consumers, and ensure continued U.S. leadership in artificial intelligence.